EV Startup Fisker Prepares for Bankruptcy Filing

Another EV takedown. Eh, Elon?

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Fisker, which recently warned that it risked running out of cash this year, hired financial adviser
FTI Consulting and the law firm Davis Polk to work on a potential filing, the people said. The car company reported last month that it had $273 million in sales last year and more than $1 billion in debt.
Fisker last month issued a so-called going-concern warning that there was “substantial doubt” about its ability to stay in business. The company said it was negotiating to raise additional cash from investors and looking for a new manufacturing partner in the U.S.
Fisker and FTI Consulting declined to comment, while Davis Polk didn’t immediately respond.
Shares of Fisker fell more than 46% in after-hours trading Wednesday after The Wall Street Journal reported the company’s hiring of the restructuring firms.
The Manhattan Beach, Calif.-based company in late February delayed the release of its full financial results for last year, because it lacked a sufficient number of experienced accounting professionals, according to a regulatory filing.
Fisker is one of a cohort of once-highflying EV startups that went public at the beginning of the decade, many through special-purpose acquisition companies, or SPACs, that helped fast-track their market debuts. Their rise also coincided with a surge of investor enthusiasm for companies that could potentially follow in
Tesla’s footsteps and break into the highly competitive auto industry.
https://archive.is/SlScU#selection-5881.0-5927.65